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UNIT 4 Industrial Relations


Relations Definition & Main

aspects Trade Union Legislation Methods of settling industrial dispute Collective bargaining Legislation concerning settlement of industrial dispute

1_Industrial Relations Definition & Main aspects

Meaning of IR

Dale Yoder Relationship b/w management & employees or among employees & their organisations that characterise or grow out of employment. Elements of IR:

Employer Employee relations Trade unions State Service sectors

Evolution of IR

Earlier organisations were small, so few employees. Employer could maintain an informal or a personal relation with the employee But as the industry began to expand. More employees joined in. so it was not possible for an employer to maintain a personal relation with every one. As a result employees demands started to be neglected. So a need felt to have a formal structure which could provide the rights of the employees (generally the weaker section of the society).

Dominant aspects of IR


Co-operation b/w labour & capital Co-operation flows from self interest of both the parties
Industrial unrest Stoppage from work Slowing down of production Strikes & lockouts


Nature of Industrial conflict

Capitalist society At a particular point of time, demand of only one party can be satisfied. Buyer v/s seller Conflict is not personal, it results from the capitalist system Employer has his own limitations Labour power is different from any commodity Profit maximisation goal of management Authoritarian approach

Results of industrial conflict

Adverse effects on production, efficiency, costs, quality, human satisfaction, disciplines, technological & economic progress & welfare of the society Also leads to strikes, lock outs & the vicious circle continues Absenteeism & labour turnover increases

Industrial dispute

Industrial conflict general in nature Industrial dispute specific in nature Disagreement b/w management & labour with respect to wages, working conditions & terms of employment Specific cause of industrial conflict may be treated as causes of industrial disputes also.

Types of industrial dispute (1) Economic

Division of fruits of industry (Compensation) Wage structure & demands for higher wages Methods of job evaluation Deduction for wages Incentives Fringe benefits Methods of production & physical working conditions Working conditions Technology & machinery Layouts Changes in production

Terms of employment

Hours of work Shift working Demotion Promotion Layoff Retrenchment Dismissal Job security Retirement, etc

Types (2) Institutional

(3) Psychological

Recognition of unions Membership of unions Subjects of collective bargaining Bargaining unit Union security Unfair practices

Clash of personalities Behavioural maladjustments Demands of recognition of workers personality Authoritarian administration Lack of scope for self expression & participation Undue emphasis on discipline

Types (4) Denial of legal & contractual rights

Non implementation of labour laws Violation of laws & agreements

Interest & Rights dispute

Interest dispute disputes regarding creation of specific rights Rights dispute disputes regarding implementation of those rights Such disputes are also called as Grievances